Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 4 of 5
If other factors are equal, a decrease in the expected rate of inflation will most likely result in a decrease in ______.
B. the nominal risk-free rate
C. both real and nominal risk-free rates
A. the real risk-free rate
B. the nominal risk-free rate
C. both real and nominal risk-free rates
User Contributed Comments 6
| User | Comment |
|---|---|
| Stacerz02 | Makes sense |
| wsiyer | yes! |
| thebkr777 | Nominal = Real rfr + expected r |
| ashish100 | coolio |
| ashish100 | Wait no Nominal rfr = real rfr + expected inflation boiiii lets get it |
| zeanww | Let's goooo |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
interpret interest rates as required rates of return, discount rates, or opportunity costs and explain an interest rate as the sum of a real risk-free rate and premiums that compensate investors for bearing distinct types of risk
CFA® 2024 Level I Curriculum, Volume 1, Module 1.